Repository logo
 

Controlling the Herd: Applications of Herding Theory


Type

Working Paper

Change log

Authors

Sgroi, Daniel 

Abstract

The literature on informational cascades and herding theory has for a decade focused on the externality and suboptimal outcomes generated from decision-making when spaces are coarser than private information spaces. Much of the output has therefore been positive, not normative. This paper redresses this imbalance by detailing several direct applications for marketing and business arising from herding theory. We see that business practices such as encouraging early sales, or selling to groups rather than individual customers, can be justified theoretically by direct application of herding theory.

Description

Keywords

Is Part Of

Publisher

Faculty of Economics

Publisher DOI

Publisher URL